AXA looks to India, Southeast Asia for future<\/p>\n
Agence France-Presse, Sydney<\/p>\n
Insurance group AXA Asia Pacific said on Monday that it would
\nsoon enter the Indian market and expected accelerating growth
\nelsewhere in Asia as it reported strong profit growth for the six
\nmonths to June.<\/p>\n
AXA Asia Pacific, which is 51 percent owned by French
\ninsurance giant AXA, said it had achieved a 36 percent rise in
\nnet profit before one-off items to A$246.4 million (US$184.8
\nmillion) from a year earlier.<\/p>\n
The result was ahead of market forecasts centered on A$210
\nmillion.<\/p>\n
Operating earnings, the key indicator of the underlying
\nperformance of the business, grew 18 percent to A$185.8 million,
\nit said.<\/p>\n
The company said it expected to spend between A$35 million and
\nA$65 million over the next three years in India, the fifth
\nlargest life insurance market in Asia.<\/p>\n
This follows on the announcement last week that AXA Asia
\nplanned to enter the Malaysia market by acquiring the life
\nbusiness of Tahan Insurance Malaysia in a joint venture with
\nAffin Holdings.<\/p>\n
\"We have recently announced our entry into Malaysia and we are
\nwell advanced with our plans to enter India,\" chief executive Les
\nOwen said.<\/p>\n
AXA chief financial officer Geoff Roberts said negotiations on
\nmoving into India were nearing conclusion.<\/p>\n
\"We're well advanced in discussions with a very small number
\nof joint venture partners,\" he said. \"Watch this space over the
\nnext couple of months.\"<\/p>\n
Owen said that the momentum in the core markets of Australia
\nand New Zealand was encouraging.<\/p>\n
\"The encouraging trend that started in the fourth quarter of
\nlast year has continued this year,\" he said.<\/p>\n
The group's expansion in Asia follows a failed takeover
\nattempt of AXA Asia Pacific by the company's French parent, which
\nfelt Asian investments were being hindered by constraints linked
\nto its Australian listing.<\/p>\n
Operating earnings in Australia and New Zealand meanwhile grew
\n32 percent to A$99.8 million from the previous first half, the
\ncompany said.<\/p>\n
Group assets under management rose nine percent to A$66.7
\nbillion at the end of the first half from A$61.2 billion on Dec.
\n31.<\/p>\n
AXA Asia Pacific's position in Asia also offers exceptional
\ngrowth prospects over the next few years, Owens said.<\/p>\n
\"Our strong capital and financial position means we are able
\nto pursue growth opportunities where we see value,\" he said.<\/p>\n
The Hong Kong life market remains particularly attractive with
\nthe retirement savings market expected to more than double over
\nthe next five years, while the company also hopes to expand in
\nthe broker market, he said.<\/p>\n
Operating earnings in Hong Kong grew 10 percent in local
\ncurrency, driven by continued profitable sales growth, while in
\nChina and southeast Asia, the value of new business grew 18
\npercent to A$31.8 million.<\/p>\n
The company reported its results Monday under Australian
\nInternational Financial Reporting Standards (AIFRS) for the first
\ntime, restating comparative results for the previous year under
\nthe new standards.<\/p>\n
The adoption of AIFRS means the previous first half profit was
\nreduced to A$64.4 million after one-off items with a booked loss
\nof A$117.1 million.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/axa-looks-to-india-southeast-asia-for-future-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}